No doubt you’ve heard the pitch to buy identity protection services. Identity theft is a major hassle at the least and can destroy your finances at the worst, so it might be worth it…

But first, take some steps that cost little or nothing.

For a small fee you can instruct the three credit agencies to freeze your records so no one can apply for credit in your name—not even you. You’ll pay again to unfreeze it when you’re ready.

As I’ve suggested many times (and will continue to at every opportunity!), monitor your credit by ordering a free copy of your credit report once a year from AnnualCreditReport.com—it covers all three companies.

Also, many banks and credit cards offer identity theft protection for their customers so be sure to check with them to see how much protection you might already have.

Then, if you decide you want more coverage through an identity monitoring service, be sure to get a very clear explanation of what’s covered and how often they’ll review your records.

If a company “guarantees” protection—that’s a red flag. No one can do that!

A positive credit history and a strong credit score will help you negotiate the best terms on your next loan. Here are three tips related to the world of credit reporting.

Claim your FREE credit report

You are entitled to a free copy of your report from all three credit agencies (Equifax, Experian, and Transunion), which will help you understand how healthy your credit is and what you need to do to improve it. Under Federal law, you can obtain a free copy from each once every 12 months. Download them at www.annualcreditreport.com.

Also, several states, including Colorado, allow you to get one additional free report per year. To claim them, go directly to each company’s website. I’ll save you the trouble of looking them up: www.Equifax.com, www.Experian.com, and www.TransUnion.com.

Review the reports closely—you’d be surprised how many errors there can be. Be sure to follow up with creditors if you see a mistake. Repeat every six months!

It’s NOT as easy to get your credit score

Unfortunately, you don’t have the same legal right to get your credit score. However, lenders are required to mail you your credit score for free if you get turned down on a credit application or receive a higher interest rate because of your financial circumstances.

You CAN stop unwanted credit card offers

Under Federal law, you can prohibit the credit agencies from selling your information to lenders who, for example, mail you preapproved offers for credit cards. “Opt out” for free by contacting the credit bureaus individually or by calling (888) 567-8688 to cover all 3 with one call.

If you change your mind, you can always opt back in and start getting preapproved credit card offers in the mail again. Hey, it could happen!

Business is personal. And it impacts nearly every aspect of our daily lives. From keeping a household budget to planning for retirement, to getting (and keeping) a job or just putting up with annoying guy in the next cubicle — we've got a lot on our minds, and Personal Interest wants to help you sort it all out. We're bringing together the Denver Post $mart Editor with variety of experts from the local business community. We've asked them to offer tips, advice and general observations aimed at making the business of everyday life a bit easier to manager. Note: The bloggers were selected for their expertise, but their opinions are solely their own. While many operate their own businesses or consulting firms, we are not endorsing or advocating their businesses.